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City Council Minutes <br />July 2 2012 <br />Page 4 <br />Currently, the city funds the Storm Water Utility with an annual $50,000 tax levy. However, <br />if a fee is not approved by the Council, the estimated tax levy contribution needed to fund <br />the utility in 2012 will need to be increased to $635,514 in order to create enough funds to <br />continue a storm water system that complies with regulations. <br />Councilmember Zerwas was not in favor of charging a storm water utility fee. He felt the <br />$50,000 budgeted was sufficient for future pond maintenance. He noted his concerns about <br />adding another fee to a commercial unit, saying it wasn't realistic to burden commercials <br />businesses. He stated he will not support this fee. <br />Mayor Dietz asked when the cities on the survey started charging fees. Mr. Hanson stated <br />the bigger cities, like Minneapolis and St. Paul, had implemented a storm water utility fee in <br />the 1980's but other cities have charged a fee more recently with the last 5-10 years ago. <br />Councilmember Motin stated he realized the need for obtaining additional funding due to <br />increased permitting requirements, but questioned having to raise the budget so much in <br />order to cover these improvements, and wondered if there were a different way of <br />computing the fee each property owner would be required to pay. <br />Councilmember Zerwas asked about inspection of the ponds and are there ponds that <br />currently need to be dredged. <br />Mr. Femrite said the inspections of the ponds were a visual inspection only; the contents of <br />the ponds would have to be tested to determine the quality of the contents. He stated based <br />on a visual inspection, approximately 20-25% of the city's ponds need immediate action to <br />correct erosion or excavate sediment. <br />Councilmember Zerwas felt uncomfortable with not knowing the condition of the ponds <br />and guessing at a budget amount based on assumptions without first inspecting and testing a <br />pond. <br />Mayor Dietz asked who would be charged a fee. <br />Mr. Femrite stated that based upon preliminary calculations, every property owner would be <br />required to pay the monthly fee with the exception of those commercial properties with their <br />own industrial storm water permit. <br />Councilmember Zerwas asked what the fee amount would be for the school district. <br />Mr. Femrite stated the school district's cost would be $30,000 a year. <br />Councilmember Gumphrey asked what the process would be to start improving the 20 - <br />25% of ponds needing immediate improvements. <br />Mr. Femrite stated the city wouldn't be able to do any soil testing in-house and would have <br />to hire a consultant. He stated the testing will show what the contaminants are in the soil. <br />Mr. Femrite also commented on the fact that this preliminary report is before knowing if the <br />permitting regulations are to be increased. He stated that even if the city doesn't receive <br />further regulations, the surface water budget will be exhausted by 2014. He further stated <br />that our current expenditures are much higher than the amount being put into the fund. <br />